India’s staffing services market is poised for a significant growth over the next decade as the share of formal sector rises, according to Manish Sabharwal, co-founder and executive chairman at Teamlease Services Ltd.
The industry will grow tenfold in next 10 years, and companies which execute well will be able to take advantage of this growth rate, he told BloombergQuint in an interaction. “We are still a baby in diapers relative to the market potential,” Sabharwal said. Teamlease is at a stage where its profits can grow at a much higher clip than its top line over the next few years, he said.
Growth can be exponential even if India moves to the global average of 1.5 percent of the total labour force being serviced by flexi-staffing firms, a recent Motilal Oswal report said.
About 99 percent of the industry, which is currently informal, “is going to get crushed if we continue to enforce laws on ease of doing business”, Sabharwal. Technology, especially Aadhaar, will be an enabler to weed out challenges, he said.
The macro is in favour of the industry... India is more welcoming of the industry than when we started.Manish Sabharwal, Co-Founder & Executive Chairman, Teamlease